Lyon: Remains optimistic about the sales prospects of luxury goods in Hong Kong, luxury retail sector prefer WHARF REIC (01997)

Lyon released a research report stating that WHARF REIC (01997) management has shown a positive trend for the first time since the reopening after the epidemic in 2023. The report believes that this reflects better-than-expected operating performance, bringing potential for growth in rental income based on turnover and performance rents. The report pointed out that luxury goods sales were strong during the May Day holiday period, indicating an improvement in per capita consumption, partly driven by the depreciation of the Hong Kong dollar. The report maintains an optimistic outlook on the sales prospects of luxury goods in Hong Kong and reaffirms its outperform rating on WHARF REIC, with a target price of 40 Hong Kong dollars, and continues to view it as the preferred choice in the luxury goods retail sector.